McDonnell Manufacturing Is Expected to Pay a Dividend of $1

McDonnell Manufacturing is expected to pay a dividend of $1.50 per share at the end of the year (D1 = $1.50) . The stock sells for $34.50 per share, and its required rate of return is 11.5%. The dividend is
Expected to grow at some constant rate, g, forever. What is the equilibrium expected growth rate?

A) 6.63%
B) 6.80%
C) 6.97%
D) 7.15%